"While we are pleased to have generated record quarterly financial results, we believe the longer term benefits of titles such as Avatar and Alice in Wonderland to our business transcend a single quarter. Such benefits are perhaps best evidenced by the number of theatre deals we are doing, which will fuel additional growth for the Company over the long-term, and an increased level of tentpole movies being committed to the IMAX theatre network... We believe we have a very strong film slate for 2010, and with yesterday's film deal inked with Warner Bros. and new theatre announcements, we are beginning to paint a picture of 2011 and beyond. We are particularly pleased with the many theatre signings overseas, where our brand is gaining traction and where we see much of our future growth residing, providing a complement to our brand's strong foothold in North America."

A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. With consistency a great soul has simply nothing to do. -- Ralph Waldo Emerson

What has been so remarkable about this market for so long is how quickly and easily we recover from every little selling squall. If the market pattern of the past year continues, the indices should go straight up from here and make new highs. The worries we had on Tuesday about European sovereign debt and the Goldman (GS - commentary - Trade Now) fraud charges will be completely forgotten and once again the underinvested bulls will be kicking themselves for not buying aggressively on the pullback.

My theme for quite a while has been that we should assume that the market's pattern of action will continue until we have some clear indication that things have changed. But when a pattern has been as persistent as the quick bounces to new highs, many of us can't help but guess when things will change. It is just common sense that the market pattern will change at some point, but it has been extremely frustrating for those who keep on trying.

What keeps fooling the market skeptics lately is that the bounces after a pullback usually start off slowly. That raises some doubts about the possibility of another "V"-shaped recovery, but then we steadily gain strength and before you know it the shorts are being squeezed again and the underinvested bulls are scrambling to add long exposure.

The pattern has been so consistent for so long that that you almost have to believe that it is going to fail. Normally when a pattern is obvious to everyone, it eventually fails to work as market players move faster and faster to stay a step ahead of each other. They will keep on anticipating a bounce at an early stage until we progress to the point of never pulling back in the first place.

Market players will almost always stick to a pattern until it stops working, and that is what causes the most pain when the character of the market shifts. The folks who count on the prevailing pattern suddenly find themselves poorly positioned when it doesn't occur. As they try to reposition, they feel the other side of the trade, making the move against them even more severe.

I'm absolutely positive that will occur in this market at some point, but I have no idea when that might be. There is no reason to believe that the pattern of sharp bounces back to new highs is going to fail this time. While we are still quite technically extended, the psychology of this market just hasn't shifted much. In fact, earnings are helping to maintain the complacent bullishness that has been in place for so long.

Fears about Greece have cooled a bit, which has Europe in the green and the dollar pulling back. Baidu (BIDU - commentary - Trade Now) earnings and the Palm (PALM - commentary - Trade Now) buyout have some of the momentum money excited, but there were a few soft earnings reports as well. The bulls are in control and we'll see if they can keep the pattern going for what seems to be the 100th time.

The riskiest class of corporate bond has inched close to par for the first time since 2007. The high-yield bond market now trades at 99.48 cents on the dollar, according to a Bank of America-Merrill Lynch index, its highest price since the financial crisis hit in 2008 (loe pikemalt siit).

Today after the close, of the many companies scheduled to report, some of the bigger names include: CSTR, DRIV, EXPE, KLAC, MFE, WFR, SWIR, and WYNN. Tomorrow before the open look for the following companies to report: ACOR, AXL, AIV, AVP, B, CX, CSUN, DISCA, ENDP, DHI, MNKD, and NDAQ.